British Steel, under UK government control, to ramp up output, hire staff

LONDON (Reuters) -British Steel said on Wednesday it would hire over 180 new staff as it prepares to ramp up production following the British government's operational seizure of the group from its Chinese owners in April.

British Steel operates the country's last two remaining blast furnaces in Scunthorpe, eastern England. They have been running at a loss and came close to being shut down under plans announced in March by owners China's Jingye Group.

But following the government's intervention in April, British Steel said on Wednesday it would "significantly increase" iron and steel production in the coming months.

As such it is recruiting for more than 180 new roles in engineering, manufacturing and business functions. The group employs 3,000 people, whose jobs were at risk under Jingye's closure plans.

British Steel's interim chief executive Allan Bell said that with government backing, the company wanted to become one of the world's leading steel manufacturers.

"To help achieve this, and meet customer demand, we will be upping production," he said in a statement.

That demand is unlikely to be from the United States after President Donald Trump in March imposed a tariff of 25% on steel imports, in a blow for British Steel, which Jingye had warned was already losing 700,000 pounds ($922,000) a day.

British Steel supplies the rail, construction, and automotive industries, but has struggled with high energy costs in the UK and a glut of steel in the global market.

The government has previously said it is looking to bring in a private sector partner to secure British Steel's future.

Meanwhile, Britain is trying to agree a trade deal with the U.S. which it hopes will reduce Trump's tariffs for its exporters, including British Steel.

(Reporting by Sarah Young, Editing by Paul Sandle)